Present Estates & Future Interests Flashcards
How is a fee simple absolute created?
To A or To A and his heirs
What are the characteristics of a FSA?
Devisable by will, transferable, and descendable through intestacy
Does a living person have heirs?
No
What is a defeasible fee?
Fee simple with a catch
What are the three defeasible fees?
1) fee simple determinable
2) Fee simple subject to condition subsequent
3) fee simple subject to executory interest
How is a FSD created?
To A + duration language (for as long as, while, during, until)
If the stated condition is violated in a FSD forfeiture is ____
automatic
What does the grantor (O) have in a FSD?
PoR
What are the distinguishing characteristics of a FSD?
Transferable, devisable, and descendable
How is a FSSCS created?
1) Use of conditional words (upon condition that, provided that, but if, if it happens that)
2) an explicit statement of the grantor’s right to re-enter
What does the grantor have in a FSSCS?
A right of entry
What happens if the condition in the FSSCS occurs?
The grantor may or may not terminate
How is a FSSEI created?
look for a third party
“To A, but if X event occurs, then to B”
What does the grantor have in a FSSEI?
A shifting executory interest
Are words of desire, hope, aspiration, or motivation sufficient to form a DF?
No e.g., for the purpose of, with the hope of, with the expectation (all are just FSA)
Are conditions that restrict a transferee’s right to transfer okay?
No, and it gets crossed out (“as long as A never attempts to sell”)
Are conditions that violate public policy allowed?
No e.g., penalizing marriage or encouraging divorce
What is a fee tail
to A and the heirs of his body (limited to lineal heirs)
How is a life estate created?
to A for life (but it cannot specify a number of years, then it is a term of years)
What is a life estate pur autre vie?
LE based on the life of another (To A for the life of B)
What FI does O have in a LE?
reversion
The life tenant must not commit ___
waste
What are the duties of a life tenant?
1) preserve the land and structure in a reasonable state of repair
2) pay ordinary taxes
3) pay interest on mortgage (not principle)
4) NOT obligated to insure
What are the possible FI in O?
POR, right to entry, and reversion
What are the possible FI in third parties?
1) contingent remainder
2) vested remainder
3) executory interest (shifting/springing)
What are the two circumstances that create a CR?
1) created in an unborn or unascertained person OR
2) Subject to condition precedent (look for language before the grant to the third party)
What are the three VR?
1) Indefeasibly VR
2) VR subject to total divestment
3) VR subject to open
IVR
VR not subject to divestment, third person is certain to acquire the estate
To A for life, remainder to B; B is alive
VRSTD
Third party’s rights could be cut short by a condition subsequent
VRSO
created in a group of people where more may join the class
(B’s children, B is still alive)
A shifting executory interest always follows a ____ and cuts short someone other ___
defeasible fee; than the grantor
A springing executory interest cuts short the interest of ____
the grantor, O
What interests does RAP apply to?
CR, EI, VRSO
Find the measuring life
Look for who is alive at the date of conveyance and is relevant to what will happen in the future
